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tv   [untitled]    December 1, 2011 6:30am-7:00am EST

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three thirty pm here in the russian capital this is our your headlines now i want to the longest standing occupy movement camps is cleared by police in los angeles with hundreds of arrests along the way the move comes after an addiction order put an end to a patient with similar raids taking place all across the country. diplomatic meltdown written orders all iranian envoys to leave the country within forty eight hours and announces the closure of iran's embassy in london all of this in response to the ransacking of the u.k.'s mission in tehran several e.u.
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countries including germany and france have also recalled their ambassadors from iraq. italian taxpayers are fighting against plans which could cost the country billions of euros in the middle of its economic crisis the military spending comes as the nation attempts to tackle its two trillion euro debt and adjust to a new prime minister. ok up next when i see it is the kaiser reporter in today's edition world governments and media networks telling you truthfully about the ongoing global financial crisis or are they just smoke screening their alyson activities. unveils the truth right here. i am max kaiser this is the kaiser report you know it's a financial war and coded messages are being transmitted in the financial
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pages let's get to this stacy herbert yes max we're talking about financial war all the time here in kaiser report and it made me think back to world war two under nazi occupied france b.b.c. london broadcast coded messages to the french resistance here are some of them max . it was grandma ate our bon bons and now here is the blue horse walks on the horizon. you will be right this is fascinating so the coded message is a big broadcast in occupied france as a way to communicate to the resistance so it's still not like gobbledygook itself like jibberish but there is some meaning if you understand the code and we see this now today don't we with this kind of financial some of for loop into our day to day broadcast and let's explain now is that actually what's going on if you start off
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with a headline like this max i.m.f. drawing up five hundred seventeen billion pound package to see italy spain and the euro within moments i see this tweet from b.b.c. business remember the radio london of our modern financial era i.m.f. did not i italy loaned discussions right so you have to really do you could what's being broadcast from the centers of the financial war obviously the u.k. is now home growing down into the trenches ready for warfare with the continent of europe and this new global financial war and you've got the same thing going on and come. incidentally europe and you've got the same thing going on around the world so you have to decode these messages so in this particular instance it was just a straight denial of a coded message but the underlying subtext is that there needs to be a blitzkrieg of cash coming quickly or there is
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a dunkirk in our immediate future well i think what it is is that they send messages out like this. but the people who need to know the financial terrorists know to read those articles and look for what is really going to happen so the b.b.c. article for example international monetary fund denies italy loan talks now if you read deep into the article it says over the weekend the german newspaper developed reported that a subset of euro zone countries with the highest credit ratings including france and germany may seek to issue debt jointly however the plans were also denied by the german government on monday they say there are no plans for a aaa bond or elite bonds said the german finance ministry but but the subtext or the coded messages we know that that's not the case but they do have a plan for an elite bond or you might call it the master currency it's
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a form of financial eugenics. but from the germans it's coming and they're true kidding viz a viz the financial press so a lot of people don't understand what's happening in the markets or for answer economics because they don't understand that it's all heavily coded to communicate amongst the various financial terrorist centers berlin london york tokyo exactly max you call it financial eugenics and this debt the so-called elite bomb the so-called triple a bond by france and germany is it actually has the same exact d.n.a. of a greek bond or an italian bond or in portuguese bond or a spanish bond it's riddled with banking fraud. it's riddled with too much debt but they have the blue eyes in this case are that you know the fitch and moody's and s. and p. reading it aaa yes the movie the rating agencies are involved in financial eugenics and they give the currency coming out of berlin at the triple a blessing as it were
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but of course they are exactly the same now others observe that this is studying germany for an interesting relationship with the rest of europe or they are in fact in the vendor financing scheme where they are going to be looping loans into the peripheral countries and banking the spread similar to what china has done to us for so many years they just built the u.s. for hundreds of billions and trillions to this vendor financing scheme germany being the other big export in the world could do the same thing with the rest of the eurozone by creating the goober currency bond market with their fellow master race of currency dealers well actually i think it's yet another front in the layer upon layer of this black propaganda being pushed on us by the banks there's but before i get to that i want to show you this other headline here i met from paris to arm italy with a bailout bazooka but i suppose if i lived through a lot of blue souped up again that's just
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a headline i know most people won't read past the headline and that's the propaganda but if you look into that article germany and france discuss fiscal integration germany and france may seek to implement stronger euro area governance by striking a deal with a core group of euro nations rather than seeking the go ahead from all twenty seven members it was reported so again this. from just germany and france though their banks are hardcore involved in financial fraud they created a lot of these toxic fake derivatives that are blowing up around the world they devastated commies around the world and now they're pretending that they're the. and there's sort of cozy the. the new vichy government in france basically a cow telling to the occupy german currency forces there's cameron in the u.k. appeasing the. currency blue devil with is happy
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talk to his constituency similar to remember i believe it was lord chamberlain who made the same mistake leading up to world war two so to follow down this path of currency wars replacing shoot 'em up wars with tanks and missiles it's all being a pleasure to relatives and their and money attacks you see the same patterns emerging we saw fifty sixty seventy years ago yes and there's black propaganda great propaganda white propaganda is how it goes and this fits in somewhere there france vehemently denied reports that's how cozy had agreed with angela merkel to equip the european commission with new supranational powers this is a statement from the at least a palace the president has and no way the aim of giving super national powers to the european commission we want to discuss the ways of creating more intrusive powers for brussels to monitor countries such as greece so in the same exact sentence they contradict themselves. sarkozy is lying. is now occupied by the munchen two people is returned to the obviously the at least
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a palace is trying to assure people that the people won't have any outside authority governing now it will just be those dirty stinking debtors down there now the debtor is right the protecting the new unit of currency here in france has no connection to the blunders playing so either the i.m.f. is bailing out italy or it's not however there is another rumor going around should the fed save europe from to sastre no go economist myron scholes was the first that floated this idea over lunch at the rykes bank forum an august he said. i wonder whether bernanke you might not say that we believe in a harmonized world that the europeans our friends and we know that the e.c.b. can't print money to buy bonds because the germans won't let them and since the e.c.b. will soon run out of money we will step in and start buying european government
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bonds for them it is something to think about he said so max tell us who myron scholz is well of course he's he's a big one nobel prize winner for the black shoals option pricing volatility formula he is to derivatives what einstein is to atomic weapons he created the old idea of splitting the dollar into two parts reward and risk and then trading a risk separately and then creating now seven hundred trillion in derivatives which is pure risk no equity by the way that number's up over the past half year it's a new record amount of people thought of the rivers market was shrinking no it's a new all time highs along with a quantitative easing that's come face to could all myron shoulders option pricing volatility formula we can now look forward to having many more killings of dollars worth of worthless paper trading on worthless paper which is nothing more than a huge ponzi scheme run out of perlin whose intentions are not to run europe or run the world why would we ever think that of berlin they want to change the world that
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are sitting well max jean has a long mustache grandma ate our bon bons that was one of the sort of statements that my originals first came out with with this the fed should save euro now let's look at the fed and how they saved the financial system in america secret fed loans gave banks undisclosed thirteen billion dollars well this is information that has emerged from a bloomberg freedom of information act and it turns out that the amount of money the central bank parceled out there were from the treasury department better known seven hundred billion dollars troubled asset relief program or tarp at guarantees of lending limits and the fed. committed seven point seven seven trillion dollars as of march two thousand and nine to rescuing the financial system more than half the value of everything produced in the u.s. that year and all the purple way i have to grow my property.
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exactly the same show more or less with the thing they committed massive accounting fraud and i pause and some guys are your is still slinky school of economics it's like oh through some in chile in dollars give us a loan then they get the loan they go oh no it's over in the european banking system to help them think out some kind of bailout package that they have caused live for only less crack in the us goes through a pile of us because we have collateral the banks don't need to be bailed out anymore we don't need to dress test the couple over a little don't you don't forget no those are some american also still you know time to go no more suppose also paul krugman space should go to space looking for some aliens the payload you know stays bigger some change in three that is going through the close yes the slinky school they can move which have never fails since the one day we're all speaking german which i'm max kaiser so you know i'm prepared for that eventuality trust me well the loans were meant to deceive the public and the congress or at least it gave the congress plausible deniability that they knew what
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was going on that seven point seven trillion dollars allowed the banks to transfer all their bad debts that would have indicated that they were insolvent to the fed and with that hank paulson was able to go hold up the congress it was a big show for the population however because remember at first congress rejected it because of all their tax payers calling them and then the second time the markets crash and the taxpayer is the one saying congress you better vote for this tarp but in fact the tarp never would have happened had they known that the banks were actually completely insolvent then them were the key word there is insolvency vs illiquidity because during the time remember it was positioned as it's a liquidity crisis on insolvency crisis well the reason it's not insolvency crisis is because we're going to legally park seven trillion dollars from one off balance sheet i don't like all and ron to some other off balance sheet i don't i'm going to point to that and say see there's plenty of capital we just need a little short term to get us over. or oh by the way when it's finished we got to
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move it back over to some other place that we didn't tell you about before innocently illegal so it is insolvency and that's the root of this global crisis is that these banks b.m.p. society general h.s.b.c. barclays citigroup bank of america they are installing ok so you can write in a to come on my show and you can demonstrate why you're not insolvent but you won't because you know i'm accurately telling the truth there you are for going insolvent and you need to go the way of all dust ashes and dirt and everything that dies and ends up in the ground dead because you've got nothing i don't balance sheet. safe here with thanks for staying on the kaiser report if it gets a fresh and rented i say to the last one coming away so stay right there.
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well. it's technology innovation called the developments around russia we've got the future covered. welcome back to the cause the report i'm max keiser time now to go to venice florida and speak with karl denninger of market thinker dot org karl welcome back to the kaiser report a man excited to a very good car and then a journalist talk about and have global why hasn't john course being better rested or at least been pepper sprayed the least we could do is have a little pepper spray and maybe some plastic and cough site i don't understand this the orderly functioning of the futures markets demands they customer funds be
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sacrosanct and never invaded and it appears at this point to have not happened you know it it's one thing to say i don't know the twenty dollar bill when when it's starts is six hundred million and it always son becomes a billion plus you got to wonder these guys not only can't find the money they can't seem to figure out exactly how much is missing that's a problem well it seemed like a total breakdown all of the basic laws of the story this basic law you can't take money out of customers accounts and i mean it's pretty basic i mean if this doesn't work why would anyone keep their money in these brokerage firms that's the question max i think that everyone has to be asking now and use that risk that in my opinion is the largest to do to financial industry and to the orderly function of the markets that we've seen thus far this goes far beyond whatever point of brothers of bear stearns in there you now apparently have the futures merchant who got in trouble with their own proprietary bets and instead of facing the fact that they
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were underwater and saw but decided to dip into customer funds as a way to try to cover them in the hopes that they come back now anyone who's traded for any length of time has probably made this mistake or you get stuck in a bad position and you add to it because you're sure it's going to turn in everything's going to be ok well anyone who's done it for any significant length of time knows what happens you go. broke it appears that that's exactly what happened here but it. all seems to have gone even further and so it you know we'll just kind of bank over here that isn't ours and keep the game going for a while that's that's a cheap we truly think because if you have any kind of money on deposit with a brokerage you have to wonder whether or not this is happening somewhere else right now my understanding is that a p. morgan is a creditor of m.f. global and they're going to push to get settled on any of their accounts that are owed money ahead of these customers is not also setting a bad message to the retail banking customer out there but the real question manx
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is again whether there is or is not separation between customer funds that are on deposit or is performance sponsored let's remember this is what the c m e calls these if you go to the web page and you look at the margin to causes that are required to trade contracts they actually call them performance bonds so if they are performance bonds then they should be held separately there should be an escrow function and there is supposed to be a fiduciary responsibility if like depositing escrow money for real estate transaction with a surety it's supposed to go into a segregated account you that in fact has been violated here in the evidence certainly that it has then essentially when you are treating with somebody you are using them as a broker you are for all intents and purposes back in their bets it doesn't matter whether it's a bank or a futures merchant doesn't it sanely dangerous precedent to set within the marketplace i know i digress a little bit because i don't know if you're familiar with or not and let me ask you this question anyway the martin gal system of betting which is the bit doubling
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down on every roll the dice with the idea that eventually you will win and make some money this seems to be what everyone else the firm is doing they are continuously losing but they are doubling down on every subsequent throw because they know that they've got unlimited cash in their disposal from the fed. is this sustainable and is the correct way to describe what's going on your thoughts i think it probably is i'm come from really with a strategy that bankruptcy everybody who tries it eventually because although the probability is that this will work out the fact of the matter is that for any sort of random trial each probability of success is distinct and separate from all that came before it and so it is entirely possible to get heads fifty two times in sequence and run out of money can go bankrupt and that's the the problem is that everyone says this is an infinite source of funds to the federal reserve but in
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fact there is no such thing as an infinite source of anything and eventually you will run out of the ability to highlight these schemes and it will blow up in your face and that is it that is it appears what happened here all right here's another quick question federal judge rank up recently in new york he admitted that he had no authority to do anything but admonished the f.c.c. for their settlements when citigroup and bank of america for a fraction of their l. gotten gains on mortgage think kerry fried your thought we need to see some the prosecuting and much less looting recall because one of the good guys he's at least out there raising an issue on this but you know max the real problem we have here is that there's this deadly embrace between the federal reserve wall street and congress congress desperately wants to spend more than it takes in and checks is because it is supporting good myth that the economy is is ok at least it is not totally collapsing you have the wall street banks that are anxious to earn their
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big so they can pay their own ases and then you have the federal reserve which is the handmaid it is enabling both those things along with the washer are going to disastrous trade imbalance and all three of these parties are kind of locked together holding and saying la la la la la la la la and what you end up with at the end of the day is selling a bunch of trash to people claiming that it's perfectly good peeper when it blows up and if. then you end up in front of judges like break off who say hey guess what guys you swindle people and then there's a problem because if you actually claw back the money that was stolen it impose a realistic punishment and if you look at the statistics on the financial firms you'll find it under are three strikes laws for felonies essentially all of them would be in prison for life at this point which means they'd all be dissolved out of business so why is it that we continue to give these people chaos while at the same time the common street criminal that robs granny ends up locked up in a cell well i'm going to repeat that point carla down under because i thought it
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was something good point three strikes you get locked up for life or this thing sometimes you end up on death row and and you know why don't we apply this to the crimes being committed in the financial space and would it be appropriate to apply capital punishment in cases outright fraud from guys like hank paulson for example when an old book capital punishment but revoking corporate charters is certainly something that could be done i mean after the third offense it's i think it's pretty clear you're not going to reform right the only way that we're ever going to see this stuff max is if it stops being a business model if i can you know if you put a sign out that said robbing banks means that you only have to give back half of the loot if you're caught to be a line open to work ice and ski masks and guns in so there's really no reason for these institutions not to engage in a speedier when that's the penalty i crawled under bloomberg freedom of information request has uncommon evidence that the fed gave banks seven point seven trillion in
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loans most of them in secret in order to make the banks look healthy so that the congress would give them those part funds going back to two thousand and eight your thoughts the biggest scandal there max isn't it we we gave this money out in terms of loans in here and cheese a lot of this was in terms of mass securities another was allowing people to pledge collateral there was could the big scandal here is the fact that everyone. uses the two should c.e.o. seems to have shown up on c. and b. c. or somewhere else proclaiming how strong and healthy their firm was when in fact if you look at this data it says something entirely different i thought we had this law called cert means oxley it apparently doesn't apply to people showing up on you know various mainstream media outlets are claiming how wonderful they are all their company is on the brink of collapse fold but there needs to be some kind of enforcement mechanism here when you have firms that have their representatives showing up in the media to claim things that turn out to just plain old fashioned
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be false i don't understand how this not something that you could sue over as an investor but it appears that you know this falls into the idea that well you know we all the first amendment right to speak and it doesn't really matter whether know we say has anything to you know any any resemblance to the truth right now of course the banks earned the thirteen billion from processing the secret loans and also know their earnings were then paid out as bonuses so the other taxpayer have the right to reclaim at least that thirteen billion that was fraudulent least on from them unfortunately probably not but you could potentially i suppose file let's call it we can lawsuit essentially suing in the place of the federal government for the fraud that has taken place but in terms of the individual taxpayer having standing in these kinds of cases it is been repeatedly told that they don't even know it is the taxpayer gets ripped in and again this is just another example of
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the best congress money can buy already got two more questions than i.m.f. is either drawing up plans or not drawing up plans for another eight hundred billion dollar rescue of italy and spain and all its member nations are bankrupt then where does the i.m.f. get the money to rescue these bankrupt member nations called manager bedo. something i mean i think it's a curious thing that they floated this rumor. it was some word six hundred billion three hundred billion. i don't know where they think they're going to get the money from because it doesn't exist they increased their special drawing rights allocations of course but the problem is that the i.m.f.'s to be funded by subscriptions from its member nations in those far i think something like two or four of those nations have actually passed the allocations the rest of it not including the big ones like united states so i don't know where they think they're going to get the money from i actually found it like rather amusing it was good for a big part of the futures put i don't see where there is there right sound i meant
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a special drawing rights and this appears to be going to be a kind of a new global currency and wentz to roll up all of this bad debt and reprice it race to characterize it create new maturities and basically increase somehow and that bubble to even new heights of absurdity but finally let's talk about the ending this never ending bailout for banking and market rating frons there's the seeing and a group in their latest ten kids you listed occupy wall street as a threat to their bottom line so who's the bigger threat here karl denninger occupy wall street or the bankers to their own fraudulent activities i don't know to tell you the truth max i think the problem with occupy wall street today is that they are still trying to figure out exactly what they stand for and i have pointed out i'm on a couple their mailing list sort of pointed out to them that if they get into the way we want free blankety blank i'll keep you i'll save you from the believe that they're going to end up being relegated to the dustbin of history because there is
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no such thing as a free beat has to come from somebody on the other hand if they stay focused like a laser beam on the fraud in the financial system they have the potential to do with the tea party failed to do and that is to get the public focused in its righteous anger on what's been done to them i don't know which way this is going to go on the other hand you in the european banking system to just to bring on the edge of collapse you have all. these institutions including ones in america that bought up all this in sovereign europe thinking that this was going to be some great investment because it was trading at a fabulous disco if i could matter is it was trading at a fatalist discount because they can't possibly pay so how you're going to resolve those two things i'm not sure but frankly i see both of them being very badly sometime next year all right karl denninger out of time thanks for being on the kaiser report thank you all right that's going to do it for this edition of the kaiser in part with me max kaiser and stacy herbert our thank my guests carl then injure market taker dot org you can follow carl on twitter at ticker guy you can
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follow us at kaiser report on both twitter and facebook you can send us an e-mail at kaiser report at r t t v that are you and the next time max has are saying by all.
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